Truworths shares falls on sales drop

Johannesburg - Truworths International Ltd., South Africa’s largest listed clothing retailer, fell the most in three weeks on concern that lending growth is slowing and as monthly retail sales in the continent’s biggest economy shrank.

The stock slid as much as 3.2 percent, the most since Aug. 27 on an intraday basis, and traded 2.7 percent lower at 89.66 rand by 3:08 p.m. in Johannesburg.

About 1.3 million shares traded, or 75 percent of the three-month daily average.

The stock is the worst performer on the 11-member FTSE/JSE Africa General Retailers Index today, which fell 1.9 percent.

Retail sales contracted 0.5 percent in July on a monthly basis and rose 2.8 percent annually, missing the 3.9 percent median estimate of 14 economists surveyed by Bloomberg, according to Statistics South Africa.

African Bank Investments Ltd., the nation’s largest provider of loans not backed by assets, said earnings excluding one-time items probably dropped as much as 63 percent in the year through September as bad debts rise and the bank curbs lending growth.

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